Can someone explain this statement?

"The beauty of the fund separation theorem is that the performance seeking portfolio mandate is the same for all investors"

  • $\begingroup$ more background about fund separation theorem will be helpful. $\endgroup$
    – Gordon
    May 16 '16 at 17:39
  • $\begingroup$ @Gordon - en.wikipedia.org/wiki/Mutual_fund_separation_theorem $\endgroup$ May 16 '16 at 19:10
  • $\begingroup$ The Wikipedia entry does not contain this statement. It is a strange statement. I assume that by the "performance seeking portfolio" they simply mean the risky portfolio, while the other portfolio is the risk free asset. It is a major result of basic portfolio theory that the risky portfolio is the same for all (under some assumptions...), though people hold it in different amount. Strange terminology though. $\endgroup$
    – noob2
    May 16 '16 at 19:53

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